Before getting funds from Angel investors, either you need to get your business valuation done or investors do it yourself on the bases of current and future business perspective. Once you get funds in your company, you need to do comply with legal requirements. Income tax act has clearly notified in section 56(2)(viib) if a …
Continue reading “Share valuation methods as per Income Tax Act”
Being an employee everyone wants consideration for their efforts; similarly partners want remunerations for time they invest in firm. Every firm pays salary to their partners but they may not be aware about provision of income tax act. Merely passing an entry in books of accounts and withdrawal of salary is not enough. There are …
Continue reading “Paying Salary to Partner is not always business expense”
Dividend is a sum of money paid by company out of its profits to its shareholders. Dividends are decided by board of directors and approved by shareholders. Company distributing dividend pays Dividend Distribution Tax (DDT) to government. These are the summarized few points of dividend distribution in india. One more important definition of Deemed Dividend …
Continue reading “Loan & Advances paid to shareholders are considered as Deemed Dividend”
This might sound to be impracticable in real life, but it is not so, as this is made possible in actual practice by proper tax planning. You can make a tax planning through HUF, but before explaining it, let’s shed light on some important part of HUF law. – Only Hindu, Jains, Sikhs and Buddhists …
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Today lots of websites are there to incorporate your company. They take required documents over the email and in few days your company is in your hands. Now executive calls you and mails you the compliances which need to be done after incorporation. The now problem arises, On telephonic discussion, it’s not easy to make …
Initially freelancers and startups are worried for their fixed cost. Which are Office Rent, Employee Salary, etc. Everyone put their efforts to reduce this cost, But somewhere they have to compromise. Now in mega cities like Gurgaon, Delhi, Bangalore, you have facilities of using Coworking Space. Where all basic amenities available which everyone wants in …
Continue reading “Using Co-Working Space? Let’s see how GST has benefited us.”
In 2016 Finance Act has introduced a tax called ‘’Equalisation Levy” in Income tax act mainly to cover transactions of e-commerce. The purpose behind the introduction of this tax appears to be to bring within the tax transactions whose source of income is in india and the benefit is received by the service recipient in …
Continue reading “Do you pay Income tax for advertisement services received?”
